Bank of England released their quarterly inflation report this morning, with the prepared headlines of increased expectations of growth and employment figures putting a bid into Sterling. However the move was short lived, as details of a rate hike projection before year end almost diminished.
GBP weakened on the back of comments made in the press conference, as Carney attempted to talk the pound down. With unemployment dropping rapidly, the focus for the BoE has now moved to wage growth.
UK Labour Market
The Office of National Statistics released their monthly employment report for January to March back to levels seen before the financial crisis (2008). This positive data was overshadowed by the BoE Inflation report with Carney restating the gradual interest rate.
Link to the Bank of England Inflation Report Aug 2014